ORDER

1. These are appeals by certificate. The judgment under appeal was a delivered by a Division Bench of the High Court at Madras on 15-12-1977.

2. The respondents premises were inspected by an officer of the appellants, the Employees State Insurance Corporation, on 30-5-1966 and he found that on 9-4-1966 the respondents had employed 20 workmen or more. Thereupon the respondents were served with a notice which required them to contribute under the provisions of the Employees State Insurance Act, 1948, (the Act) for the period 9-4-1966 till 8- 4-1967. This was taken to the court under the Act. It was contended on behalf of the respondents that they had not employed 20 persons. They also contended that the period for which the demand was issued was erroneously calculated. The ESI court allowed the demand for only a very small sum, whereupon the matter was taken to the High Court. A learned Single Judge held that the demand could validly be made only for the period 9-4-1966 to 8-10-1966. The autborities under the Act thereupon appealed to the Division Bench. On behalf of the appellants it was contended that the Act would apply to the respondents factory for the full period of 12 mo